Features

APC features include:

  • you can pay APCs to boost your pension at retirement, or you can pay them to cover lost pension due to unpaid leave or industrial action
  • you can choose to pay for your extra pension by spreading the payment over several complete years, or by paying a lump sum
  • your employer may share the cost - check their policy and get written confirmation before applying
  • the extra pension you buy increases in line with inflation, both before and after retirement

Note that you can only pay APCs if you're in the main section of the LGPS (not the 50/50 section). 

How to buy extra pension

You can buy APCs in two ways.

1. Regular monthly payments

  • payments are deducted from your pay before tax
  • payments are spread over full years
  • extra pension is added to your account gradually
  • requires a basic medical statement confirming good health

2. Lump‑sum payment

  • available anytime
  • added to your pension once the payment is received
  • you may be asked to provide a medical certificate

A lump-sum payment is the only option if you are within one year of your normal pension age.

Stopping your APC payments

You can stop paying APCs at any time by writing to Pension Services and your employer. We will confirm how much extra pension you've secured when you finish.

Get an APC quotation or apply

Run a quote on the APC calculator. 

Send the quote to Pension Services and your employer if you want to go ahead.

The government actuary sets APC costs and may review them.

Tax and APCs

APCs are tax‑efficient because they are deducted before tax.

Be aware of your annual allowance - the amount of pension growth you can have in a tax year before tax charges may apply.

If you think you may be affected, consider professional financial advice.

Your APCs at retirement

If you leave or retire early

You'll receive the proportion of extra pension you've already paid for. However, your extra pension may be reduced if you retire before your Normal Pension age.

Flexible retirement 

You must stop APCs if you take a flexible retirement. We will confirm how much extra pension you have built up.

Ill health retirement

If you qualify for first or second‑tier ill‑health retirement, you will receive the full amount of extra pension you set out to buy, even if you didn't complete the contract.